Since it’s going to be lengthy, I’ve divided it into sections:
Before we started working with this digital product brand, they were on track to do €120K in revenue in January and about €30K in profit. After their biggest month in December, results started dropping in January and ad spend was slowing down along with revenue…
Not a good situation right?
It’s true that many brands have their best months in Q4, but what later? Somehow “try to survive” until Q4 next year?
No, that’s not a good strategy.
This brand was experiencing a couple of scaling issues. If you own an ecommerce brand, I’m pretty sure you’re familiar with these…
1. Not being able to spend more than a certain amount and continue getting good results.
2. Huge declines in ROAS when trying to scale.
3. Daily inconsistencies.
4. Too much reliance on Facebook Ads.
So obviously quite a lot of work needed to be done.
We divided it into a couple of parts.
Fundamentals that make or break online brands.
Let’s dive into these!
Video is king these days. There is no denying. Want your ads to stand out? Video. Want to advertise on YouTube? Video. Want to make it easier to sell your product? Video.
We set out to produce a ton of high quality video content for this brand. Not just 3 videos, but dozens of videos. For multiple best-selling and new promising products.
We outlined the key selling points and USP and got to work!
There’s a couple of things we always stick to in every video:
- Immediately call out the audience you’re after.
- Show something attention grabbing in the first 1-2 seconds, otherwise you may get scrolled past through.
- Use big captions to highlight benefits (usually capital letters work best for us).
- Highlight social proof (trusted by X customers, 5 star reviews, as seen on)
- Give a guarantee (30 days money back etc.)
- Invite people to take action at the end.
After testing a couple of different video styles, we found what worked best for this brand.
I do have to say though that our team has spent months perfecting this split test, so we knew exactly what to test and how to set it up.
Videos enabled us to generate DOUBLE the ROAS that image ads did. Talk about profitability with a digital product 😅
Another fundamental piece is ad account structure.
You need to segment your traffic.
Otherwise things are going to break. You’re never going to get the same costs from cold traffic and warm traffic.
The key to stability and easy scale? Segmentation and proper exclusions.
Facebook’s algorithm is especially vulnerable to performance fluctuations. Segmentation is what allows you to stabilize.
In the past, this was NOT always necessary on Facebook, and honestly it took us months to realize this. We’re now extremely aware of this because we run a lot of traffic.
So how do you segment traffic?
For ecommerce, we always split everything into 4 stages:
- Cold traffic. They’ve probably never heard about you before. They don’t know who you are.
- Warm traffic. They’ve engaged with you or visited your website.
- Hot traffic. These people added to cart or viewed products very recently.
- Your customers. These people you need to treat with special attention. They are the backbone of your business.
Now when it comes to exclusions, we pretty much always exclude website visitors, engagement, and customers from cold traffic. If you don’t, prepare for instability. The right time frames for exclusions vary from brand to brand, but the sweet spot is usually around 30 days.
From warm traffic, we pretty much always exclude customers.
From hot traffic, we sometimes exclude customers and sometimes not. It depends on results. You do want to be retargeting them with dynamic ads, so it’s best to leave a separate ad set just for them.
Existing customers – if you have a huge customer base, you may segment it into 0-30 days since last purchase, 30-60 etc. and use different messaging. Retargeting all customers at the same time also works well.
Having a good account structure allows you to set proper KPIs for every stage of awareness. Then you will know if the 3x ROAS you’re getting on cold is actually cold or not. If you don’t have proper exclusions, you never really know. If you have exclusions, you know exactly when to kill ad sets and ads.
This brings us to automation. Another key to consistent performance. It also makes life easier because automation automatically scales your best ad sets and kills whatever is not making money or meeting your KPIs. It becomes pretty easy to set up automated rules and set KPIs once you spend a decent amount of money on a couple of ad accounts for a few brands.
We run different rules for different stages of awareness. They usually look at today, the last 3 days, and lifetime data. For example, if an ad spends 3x the average CPP and has a lower ROAS than the target for a given stage of the funnel, we will switch it off.
The 2 most important things we did on Google ads were with YouTube and Google Shopping.
The structure of the ad account was a bit messy with dozens of very similar search campaigns running. We consolidated them and switched off the ones that weren’t profitable.
Let’s start with Google shopping.
This brand has over 100 products and their feed was really messy. There was no segmentation whatsoever. Just one shopping campaign and one ad group. No division into product groups, price ranges, or target audiences.
We segmented the feed and added a lot of custom data (custom labels and standard columns) to be able to “target” our shopping campaigns more effectively. By “target”, I mean run a specific product set using a specific negative keyword list.
This allowed us to basically double and triple the ad spend on Google shopping in a very profitable way.
We also added more than 10 countries to test shopping ads in.
On search, we moved all brand related keywords to a new campaign, and properly segmented everything else.
Basically separate campaigns for different types of keywords, different stages of awareness, and different products.
It may sound complicated (you may have a lot of campaigns depending on the number of products you have), but this is one of the best ways to get results.
Showing highly relevant search ads is what makes PPC work.
For this brand, we show people different ads with relevant products depending on what they search for.
As an example, if this was a shoe brand and someone was searching for black sneakers, we would show them black leather sneakers, black suede sneakers etc.
Product Launch Strategy
We used this strategy to bring in close to €100,000 in revenue for this brand and as much as €36,400 in a single day.
Here’s an overview:
- When a new product is announced, we launch an early access / waiting list that people can opt into to get notified when the product is released.
- This announcement is sent via email to everyone on the list and we use it to drive traffic via FB & Google to get people to sign up. It’s used both for cold and warm traffic.
- The people on the list continue getting new updates about the product, it’s benefits, features etc. We basically tease the product and build up excitement. They also get lots of free value.
- On the release day, everyone on the waiting list and everyone from the newsletter gets an email with the link. People from the waiting list may get additional bonuses or a special deal. The waiting list is also constantly retargeted with ads.
When you do it right, a waiting list will increase your conversion rates and AOV.
Thank you so much for reading this far. I truly appreciate your time and I hope you found this case study useful. I will be forever grateful if you share this with other people who might find it valuable.
If you have any questions, please feel free to contact me directly at [email protected]. I will be happy to help.
Do you own an ecommerce brand doing over $100k/month and are looking for a trusted marketing partner to take you to the next level?
Shoot me an email at [email protected] Would love to chat with you.
Cheers to your continued scale and profitability,